Industrial Hits 31st Quarter of Positive Absorption
Investors are drawn to industrial properties such as the Northgate Business Park, significant due to its location in the North Dallas/Garland submarket, an established, strong and stable area in high demand.
GARLAND, TX—The second quarter ending June 30, 2018 marks the 31st consecutive quarter of positive absorption for the Dallas/Fort Worth industrial market. Industrial occupiers took down just under 6 million square feet in the second quarter, bringing the year-to-date absorption total to nearly 10 million square feet, in line with mid-year absorption levels tracked during the past three years, according to the CBRE second quarter 2018 industrial MarketViews report for the Dallas/Fort Worth market.
The construction pipeline grew by 7.9 million square feet in new starts during the quarter to reach a new record–22.3 million square feet of new industrial and flex product is underway in DFW. New product totaled 6.4 million square feet and was 54.8% pre-committed, largely due to several build-to-suit properties delivering in the past 90 days. The market-wide vacancy rate was essentially unchanged, at 5.8% at the end of the quarter, GlobeSt.com learns.
Further demonstrating the strength of the DFW industrial market, Fort Worth-based Corinth Land Co. and Dallas-based Prattco Creekway Industrial recently acquired the Northgate Business Park. The park is located at the intersection of Miller Road and Interstate 635/LBJ Freeway in the well-established North Dallas/Garland submarket. This site benefits from its location near significant demand drivers and the major transportation arteries serving the area. The business park was originally developed by Trammell Crow in 1980.
“This acquisition is now the cornerstone of our portfolio, given its significance in the North Texas industrial real estate market,” said Paun Peters, Corinth Land Co. president and founder. “The North Dallas/Garland submarket is established, strong and stable.”
The four-building business park encompasses 213,481 square feet, includes 11 tenants and is 100% occupied. The purchase was financed by Veritex Community Bank of Dallas with equity provided by Fort Worth-based Western Production Co., an affiliate of Corinth Land Co.
“This property offered a highly competitive bidding process,” said Lance Bozman, a Prattco Creekway Industrial partner. “The Northgate Business Park is an ideal complement to our portfolio due to its institutional quality, size and the minimal downside risk.”